Pennsylvania Tax Incentives for Expanding Businesses

State and Local Tax

By Cathleen Condrac

As the economy continues to show positive momentum, businesses may be considering an increase to their workforce in order to keep up with increases in consumer demand. Pennsylvania’s Job Creation Tax Credit Program (“JCTC”) was developed to help existing businesses that want to expand, as well as to attract new businesses to the Commonwealth. Under this program, eligible businesses will receive a $1,000 tax credit for each new job created as long as 25 or more new jobs have been created or employment has been increased by 20% within a three-year period. The resulting tax credits may be used to pay a number of state business taxes, including, but not limited to, personal income tax, corporate net income tax, capital stock/franchise tax, gross premiums tax and gross receipts tax.

Businesses that fail to maintain operations for a minimum number of years or that fail to create the approved number of new jobs will be required to refund the total amount of credits utilized.

For more information on the JCTC Program, contact Cathy Condrac at ccondrac@schneiderdowns.com or (412) 697-5403.

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